Wolfson Microelectronics, the Scottish microelectronics and semiconductor company, saw its share price soar by more than 8% yesterday as traders cited market talk of interest from Texas Instruments.

Neither Wolfson nor Texas Instruments, which makes semiconductors, sensors and controls, would comment on the takeover speculation. Wolfson shares closed 10.5p, or 8.5%, stronger at 134p.

City analysts said the company would be an attractive takeover target. Wolfson lifted fourth-quarter revenue by 36% despite challenging market conditions during the first half of 2007. The company is expected to report first-quarter revenues of $46m (£23m) in a statement today, although the focus will be on the projected full-year performance.

Last month, sources signalled Wolfson's technology would not figure in the new iPod Nano and iTouch ranges.

Earlier this year, Wolfson said profit before tax for the three months to December 30 climbed to $13.6m from $11.8m the year before on record revenue of $71.6m.

The company, which specialises in signal processing chips for the consumer electronics market, is headquartered in Edinburgh.